If Denver’s appreciation is still strong, borrowing might keep you growing while holding onto a great asset!

It is better to even be slightly cash flow negative in year one with a quality asset than to buy in the hood and find out that your xls spreadsheet did not tell you the whole story..

So while cash is necessary to keep the property afloat, I invest more for the appreciation of the asset.  

If you’re looking to build long term wealth, accumulate assets, take advantage of tax code, and benefit from appreciation, then play the appreciation long game.

It's always important to have contingency reserves and having a healthy contingency line item that's capitalized can greatly reduce cash during life of loan.Loan Administration:Remember construction lenders release for completed work and the borrower has to navigate the process by which the work is completed in order to obtain reimbursement.

my question is specific towards obtaining a mortgage in BC Canada. 

So yes, at one point or another (and fairly soon) the government (local/state/federal, "big" or "small") can coerce clean up.Your scenario depends on responsible owners/insurers with assets, Jim.

Generally we raise capital from investors who want a fixed income and have enough meat on the bone to keep all the equity in the deals and push the valuation and also obtain commercial financing where we can get 75-80% LTV financing and still maintain a DSCR of 1.2+2.) 

I would be amazed, shocked even, if a traditional financial institution was willing to lend on a non-habitable asset up to 80%. 

The alternative is to set up a self-directed IRA, or better, a truly self-directed Solo 401k plan, invest in alternative assets, and then do the conversion.